22nd Century To Secure $3M Via Registered Direct Offering Priced Above Market

22nd Century Group, Inc. XXII has entered into definitive agreements with certain investors for the purchase and sale of 778,634 shares of common stock and warrants at a price of $3.80 per share in a registered direct offering priced above market. Gross proceeds to the company from the registered direct offering are expected to be $3.0 million, before deducting the placement agent’s fees and other offering expenses payable by the company. The company intends to use the net proceeds from this offering for the continued commercial expansion of its VLN reduced nicotine content tobacco cigarettes in additional markets, working capital related to its commercial activities and general corporate purposes.

“We are encouraged by the confidence investors have demonstrated in our path forward through the participation in our latest offering of securities which corresponds with the inflection point we are experiencing in critical aspects of the business,” stated James A. Mish, CEO. “In turn, we are pleased to have strengthened our capital position, deliver continued operational momentum, and taken successful steps toward regaining compliance with Nasdaq listing standards.”

The Special Equities Group, a division of Dawson James Securities Inc., acted as the sole placement agent for this transaction.

As part of the transaction, the company agreed to issue to the investors warrants to purchase up to 1.56 million shares of common stock. The warrants have an exercise price of $3.80 per share and are exercisable six months from the date of issuance. The closing of the offering is expected to occur on or about July 10, 2023, subject to the satisfaction of customary closing conditions.

Benzinga Cannabis Capital Conference

The Benzinga Cannabis Capital Conference, the place where deals get done, is returning to Chicago this Sept 27-28 for its 17th edition. Get your tickets today before prices increase and secure a spot at the epicenter of cannabis investment and branding.

Photo by Giorgio Trovato on Unsplash